US GLOBAL INVESTORS, INC
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The week of June 20th ended with the Dow Jones Industrial Average closing at
7796.51, up 14.47 from last Friday's close. The Dow is up 450 points this month
and 20.7% for the year. The Russell 2000 index rose 0.39%, the S&P 500 index
rose 0.61% and the NASDAQ composite rose 1.69%.
The Consumer Price Index rose 0.1% in May, while the core Consumer Price Index,
which excludes food and energy costs, rose 0.2%. Industrial production for the
month of May rose 0.4%, an increase spurred on by an expansion in auto
production, commercial aircraft output and an increase in high technology goods.
This was the tenth consecutive monthly increase in production. Industrial
Capacity for the month of May increased to 83.7%, the highest level since
September 1995. This may be an indication that the economy is ready to
accelerate after a slow second quarter. The bond market rallied this week in
light of low inflation indicators and market sentiment that the Fed may abstain
from increasing interest rates at the July FOMC meeting. The 30 year bond ended
the week with a yield of 6.63%, a 15 basis point decline.
In foreign markets, Hong Kong's Hang Seng Index ended the week with a record
close of 15,154.36. The 647.87 point gain was the largest one day point gain
ever and the 4.5% increase was the biggest percentage gain since February of
1995. In China, the B-shares markets finished strong across the board. The
Shanghai B-share index rose 2.2% to close 85.04 points higher and the Shenzhen
B-share index rose 1.7% to close 149.14 points higher.
In the precious metals market, the price of gold ended the week with gold
falling below the $340 mark. The Comex division of the New York Merchantile
Exchange announced that gold inventories rose 12 thousand troy ounces today. The
Joberg Gold Index ended the week down 8.99% at 1027.4 as futures traders aimed
to settle their positions before the closeout of contracts on Friday. Gold ended
Friday at $339.40, $3.70 lower from last week's close.
MORNINGSTAR RANKINGS AS OF MARCH 1997
1 YEAR 5 YEARS 10 YEARS
--------- -------- ---------
U.S. Near Term Tax Free Fund 5 stars 4 stars NA
out of out of
1751 funds 601 funds
U.S. Tax Free Fund 5 stars 4 stars 3 stars
out of out of out of
1751 funds 601 funds 267 funds
U.S. Real Estate Fund 5 stars 1 star NA
out of out of
3048 funds 1016 funds
U.S. All American Equity Fund 5 stars 3 stars 1 star
out of out of out of
3048 funds 1076 funds 601 funds
China Region Opportunity Fund 5 stars NA NA
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Past performance is no guarantee of future results. Net asset value will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than their original cost. No investment in any mutual fund is either insured nor
guarnteed by the U.S. Government. For more information, please contact a
shareholder representative..
Morningstar proprietary ratings reflect historical risk-adjusted performance as
of 3/31/97. The rate are subject to change every month. Morningstar ratings are
calculated from the funds' three-five, and ten year average annual returns in
excess of 90-day Treasury bill returns. The one-year rating is calculated using
the same methodology, but is not a component of the overall rating. Five stars
are awarded to funds in the top 10 % of their category, four stars are awarded
to funds in the next 22.5%, three stars are awarded to funds in the next 35%,
two stars are awarded to funds in the next 22.5%, and one star is awarded to
funds in the bottom 10%.
